Dr. Contrarian: Why Mixing Bonds and CDs With Stocks Actually Increases Your Risk

Warning: If you are a financial adviser, financial planner or another type of "consulted one," the following article might pose a risk to your health. By reading further, you agree that the author is not liable for any symptoms or problems you may have due to your response to this article, and you bear full responsibility to all such.

When you hire a financial adviser or planner to get advice and plan your investments, they uniformly start by understanding your risk preferences and attitudes.

After gauging your risk attitude, they provide you with investment portfolio recommendations to match your risk profile. The matching is accomplished by using different classes of investments , each supposedly representing a different risk and return profile. ...